@cypherdoc - SC is not simple to understand
transacting in SC can be separated in 3 steps
1. entering SC
2. using SC
3. exiting SC
steps #1 and #3 => entering and exiting is 2-way-peg
a) 2-way-peg can be done by
- trusted entity (human or server will convert between MC and SC) => it can be you (cypherSC)
- Federated peg (N humans or oracles will create transactions on MC and SC -> locking and unlocking BTC and scBTC)
- Co-signed (N humans or oracles ) and SPV proof from SC will be required to convert between MC and SC
- bitcoin (bitcoin protocol wlll exchange BTC <-> scBTC)
- ... and many more
b) Then there is step #2 "using SC". This is separated from creating 2wp.
Using SC will require mining. This can be done by
- MM merge mining
- trusted entity (server will confirm blocks)
- using Federated miners (those can by differnet from those who created Federated peg)
- Oracle/s
- bitcoin timestamping
- SNARK
- ... and many more
c) Block in SC can be new blockchain concept (aka, 'faster transactions', 'different monetary policy', 'better privacy', 'more extensive scripting', 'contracts', 'different cryptography', 'different mining models' and so on).
edit:
2wp, mining, blockchain concept are orthogonal. They create new 3-dimensional world.
that is how i understand it. but as far as you pumping the Federated server model, this is from the paper itself pg 7:
Although it is possible to use a simple trust-based solution involving fixed signers
(see Appendix A) to verify locking of coins, there are important reasons to avoid the introduction
of single points of failure:
Trusting individual signers does not only mean expecting them to behave honestly; they must
also never be compromised, never leak secret key material, never be coerced, and never stop
participating in the network.
Because digital assets are long-lived, any trust requirements must be as well. Experience has
shown that trust requirements are dangerous expectations even for timespans on the order of
months, let alone the generational timespans we expect financial systems to last.
180
Digital currencies were unable to gain traction until Bitcoin was able to eliminate single
points of failure, and the community is strongly averse to the introduction of such weaknesses.
Community mistrust is reinforced by financial events since 2007; public trust in the financial
system and other public institutions is likewise at historical lows.